I'd typically just look at comps in the area and list accordingly, but I'm curious to see if others are using specific tools and/or metrics to determine rental pricing.

When you are underwriting a small multifamily deal, for example, 4 to 10 units or more, in a tertiary market with C & B-class properties, what is the best way to determine a safe cap rate for your subject property?

Hi Friends,I am looking to flip in the Tampa area and I'm in touch with a few Wholesalers and Realtors there.I have received multiple properties from them; however, I am always concerned that their ARVs are inflated, which will leave me in the red.How do you determine correct ARVs when you are not physically present and can't pull your own comps from the MLS?

First, you need to determine what is the demand in that area.

Rent divided by PITIA determines whether the deal qualifies.But that is only part of the equation.Credit score directly impacts:Interest ratePointsMax LTVCash-out eligibilityReserve requirementsEvery DSCR lender has minimum FICO requirements.

Review reserve levels after the repairs, confirm whether any special assessments exist or are planned, and determine whether the project is likely to regain warrantable status once the work is finished. 

What metrics do you use to determine if it is a good deal or not?

I am curious as to why there is such a large disparity in how a true cap rate is determined?

I’ve been hearing a lot about cost segregation studies and have a few questions…- What are some of the key factors that determine whether a cost segregation study makes sense?

Rent-to-price ratio is definitely important for a long-term hold because it determines how much cushion and stability you have month to month.